Blog Archives

The Internet - Another Tool in the I.R.S. Arsenal

9/27/2019

Kudos to the Maryland State Bar Association for its informative online magazine – Tax Talk.

In a recent Tax Talk issue an article caught the eye of my researcher. The title alone was sufficient to take notice…Is the IRS Watching You? By Michael March, Associate Attorney at Rosenberg Martin Greenberg. Summer 2019. Tax Talk. www.msba.org

In this excellent article, one suggestion is that: "Moving forward, it is likely the IRS will leverage information already warehoused by internet conglomerates such as Amazon, Google, and Apple to further enhance the automated corrections of tax returns and further refine the audit selection process."

In related information – from the Amazon.com website: Internal Revenue Service (IRS) regulations require that U.S. payment processors, including Amazon Payments, file a Form 1099-K to report unadjusted annual gross sales or payment volume information for customers that meet both of the following thresholds in a calendar year:
More than $20,000 in gross payment volume
More than 200 transactions

If you are a small business and utilize the internet in your sales/payments, be aware that the IRS will be watching.

Seek the advice of a qualified professional concerning tax obligations you may incur with internet sales.

Working To Preserve Your Wealth and Protect Your Future…in a Constantly Changing World

Please read my Disclaimer and How I Can Help You

Visit my website: www.attorneybarbaradalvano.weebly.com for over 300 articles; information about free webinars and printable infographics

0 Comments

The State Debt Clock

9/19/2019

0 Comments

My researcher found an interesting website…usdebtclock.org.

If you want information about how much every individual in American ‘owes’ – log on.

One of the additional pieces of data is the state debt clock. Just click on your state and you will learn the current population of the state along with the somewhat harrowing information about the ‘debt per citizen’ – that’s right, how much each resident of the state ‘owes’ in debt.

As an example, at the time of this writing, Colorado had a population of approximately 5,770,672 and a ‘debt per citizen’ of $8,419. But compare that to the debt per citizen data for New York, at over $19,000 (as per the debt clock)

If you want to have some fun, watch the federal debt clock spin to adjust itself…with alarming frequency!

But personal debt is no laughing matter. It can derail the best retirement plans. Log onto my website for articles about debt; how to avoid it; how to manage it and how to reduce it.

Working To Preserve Your Wealth and Protect Your Future…in a Constantly Changing World

Please read my full Disclaimer and How I Can Help You

Visit my website: www.attorneybarbaradalvano.weebly.com for over 320 articles; information about free webinars and printable infographics

0 Comments

The Ticking Clock-The Ticking Time Bomb

9/14/2019

0 Comments

Recent surveys have indicated that couples have been waiting longer to have children. To combat the ‘ticking time bomb’ of infertility, women have sought hi tech intervention – the freezing of eggs and advanced assisted reproduction techniques (known as ART)
Both Apple and Facebook made news when it was reported that both companies decided (or were considering) coverage of the expenses of their female employees who wanted to freeze their eggs. (CNNMoney.Ben Rooney.’Facebook, Apple pay to freeze employees eggs’-Oct.2014) “Egg freezing allows women to focus on advancing their career during peak childbearing years without sacrificing their fertility.”
The science also has been applied for women who are facing medical procedures that could affect their future fertility. In some medical situations, insurance would cover the freezing of eggs; other situations have been determined to be elective procedures and not covered.
Whether you agree or disagree with the concept of assisted reproduction technique, the ‘ticking time bomb’ of assisted reproduction and frozen genetic material can lead to some very complex estate planning issues.
Let’s take one example: your biological daughter, Mary, has had her eggs frozen, then marries Bill. Before Mary and Bill can have children together, Mary dies. Mary has designated her husband Bill as “heir” to her frozen eggs. You lose touch with Bill and later find out that Bill remarried. Bill’s new wife, Suzie, is infertile. Bill and Suzie decide to use a gestational surrogate and Mary’s frozen eggs to have a child. Is the child from the second marriage (Bill and Suzie) your grandchild? Remember, the child was ‘conceived’ using your daughter Mary’s frozen eggs.
This complicated scenario can play out equally with frozen genetic material (sperm) of a husband.
We cannot ignore how frozen genetic material may impact the estate planning process.
We need to answer - Is there the potential of descendants being born using assisted reproductive technology?
Working with your estate planning lawyer, find out if assisted reproduction technology-the freezing of genetic material has occurred or is likely to occur with respect to any of your (future/potential) heirs. Those conversations may be awkward, but necessary for estate planning purposes.
Then be specific in your documents as to the definition of child, grandchild, parent, etc.
A word of caution: A generic form taken from the shelf will not offer the solutions that you need to clearly define who will be receiving your legacy.The “standard” legal definitions of children, grandchildren and heirs are probably not sufficient for your will or estate plan. Such “off the shelf’ documents can often create unforeseen results with respect to the inheritance you intended to leave.
It is beyond the scope of this article to define all the legal aspects of ART going forward. Legislation will continue to evolve along with the techniques and technology.
Remember, no one is ‘entitled’ to receive anything from your estate. The decision is yours, but the definitions must be clear to determine who will receive an inheritance.

Working To Preserve Your Wealth and Protect Your Future…in a Constantly Changing World

Please read my full Disclaimer and How I Can Help You

Visit my website: www.attorneybarbaradalvano.weebly.com for over 320 articles; free webinar information and printable infographics

0 Comments

Medicare Patients and Hospital Stays

9/8/2019

0 Comments

Medical issues; medical debt; hospital costs and long stays in rehabilitation facilities are things that can derail retirement planning.

I often write articles about retirement because estate planning and retirement planning – although different - are closely related.

Having a goal for retirement includes matters such as: financial planning after you stop working and considering future healthcare needs.

If you are on Medicare - An important article that my researcher found may help you plan for your emergency medical needs. The article outlines the difference between inpatient status and observation status.

Note: Since the time of this research and writing, the exact aspects of both inpatient and observation status are likely to have changed, depending upon changing legislation; jurisdiction and hospital affiliation.

Knowing the difference between the designation of inpatient status and observation status can save you and your loved ones surprise hospital bills.
I urge all Medicare recipients to read the article in careconversation.org titled: “Inpatient or Observation: Knowing the Difference Could Save You Thousands”

As the article notes: “The difference between inpatient and observation status is important because Medicare pays different rates according to each status. Patients admitted under observation status are considered outpatients, even though they may stay in the hospital for several days and receive treatment in a hospital bed.”

A determination of “observation status” also affects care in a rehabilitation/skilled nursing care facility. “Observation status” hospital stays do not necessarily count toward Medicare’s requirement. In addition, in some cases, hospitals can change status on a daily basis.

There is a class action moving forward, albeit slowly, about the use of ‘observation status’.

Alexander v. Azar – more information at - Center for Medicare Advocacy.org
“Court denies all government motions…” Matthew Shepard (March 28, 2019) “Although care provided to patients on observation status is often indistinguishable from inpatient care, it does not count toward the three-day inpatient hospital stay requirement for Medicare coverage of nursing home care. This leaves beneficiaries with the burden of paying for – or forgoing – extremely costly nursing and rehabilitative care…”

In a ruling, the court cited a study performed by Brown University in 2012 that identified more than 900,000 Medicare patients who were subject to observation stays during 2009 alone.

Other articles explaining and discussing ‘observation status’ –
Verywellhealth.com - What Is Hospital Observation Status? by Elizabeth Davis, RN (Updated November 23, 2018)
www.NPR.org - How Medicare's Conflicting Hospitalization Rules Cost Me Thousands Of Dollars (April 20, 2018) Alison Kodjak,
www.ajmc.org - In Fairness to Seniors, Observation Status Should Be Eliminated by Andria Jacobs, RN, MS, CEN

I urge everyone with Medicare to read the articles; know the difference between inpatient and observation status as well as between inpatient and outpatient status; and ask questions when using hospital services. When possible, have an advocate who can discuss hospital procedures and billing with you.

Working To Preserve Your Wealth and Protect Your Future…in a Constantly Changing World

Please read my full Disclaimer and How I Can Help You

Visit my website: www.attorneybarbaradalvano.weebly.com for over 300 articles; free webinar information and printable infographics

0 Comments

The Internet - Another Tool in the I.R.S. Arsenal

The State Debt Clock

The Ticking Clock-The Ticking Time Bomb

Medicare Patients and Hospital Stays

Author

Archives

Categories